JCI Falls 8 Percent, Minister of Finance Emphasizes Market Turbulence is Only Temporary

JAKARTA - Finance Minister Purbaya Yudhi Sadewa assessed that the decline in the Composite Stock Price Index (IHSG) was triggered by MSCI's report regarding market transparency issues and gorengan stock practices.

For information, the Composite Stock Price Index (JCI) moved in the red zone with a correction of 665.89 points or an equivalent decline of 8 percent to the level of 7,654.66 on Thursday, January 29, 2026 at 09.27 WIB.

He emphasized that Indonesia's economic foundation is in good condition and in the future it will be even stronger.

According to him, the market reaction that occurred at this time is only temporary or a momentary shock and market panic, more due to concerns that Indonesia could be considered a frontier market.

"What I can confirm is that our economic foundation is not a problem, it will get faster in the future, this may be a shock to people about the possibility or we think the market is a market like that, a frontier level," he told the media, Thursday, January 29.

However, Purbaya ensured that this would not happen, because the national economy is still quite good.

"But I'm sure I won't go down there, because our foundation is good, later the deficiencies mentioned by MSCI will be corrected by Mr. Mahendra. Later Mr. Mahendra will talk to the exchange maybe this afternoon," he said.

Purbaya again emphasized that the turmoil was clearly only temporary because the economic fundamentals were not a problem and again reminded of the existence of gorengan stocks which had long been a concern.

"If the stock exchange falls, I have warned from the beginning, clean the stock exchange from goreng stocks, but the big ones are still there, the stocks, the blue chips, they haven't risen too high, if anyone is afraid, just run there. So if the economy continues to improve in the future, "he said.

He is optimistic that the national economy will continue to improve and the Government will continue to make improvements, including improvements in the customs and tax sectors.

"Yesterday I was already, I was messing with customs, next week I will fix the tax mess. So our income will get better, so that our fiscal foundation is no longer a problem and the money obtained will be used to build economic growth, create economic growth. So don't be afraid," he added.

Regarding the duration of market turmoil, Purbaya estimated that it would only last for two to three days.

He explained that MSCI included Indonesia in certain indices and assessed that there were shares that were considered suspicious due to speculation practices, so it asked for increased transparency in index calculations.

"They ask for more transparency in this calculation and later maybe Mr. Mahendra will explain in more detail, what steps will be taken by OJK," he said.

Purbaya emphasized that he was still optimistic that the JCI would reach the level of 10,000. "At the end of the year, to the moon, don't be afraid. Our foundation is good. I am the Minister of Finance. Optimistic 10 thousand, don't be afraid," he explained.